The Outsourcing Week in Review (Mergers & Acquisitions): July 26, 2023

Welcome back! We take the latest, greatest, and most noteworthy BPO M&A news and give it a tasty spin, with a dash of hot sauce! 💥

We begin with HCL Technologies, India‘s third-largest IT services firm. It is putting down $280 million to bag ASAP Group, a German automotive engineering services company. With this deal, HCLTech shifts gears to gain ASAP’s expertise in autonomous driving and e-mobility, accelerating its move from IT consultancy to technical high-flyer. This aligns with the current trend in India’s $245 billion software services sector to venture into advanced sectors like telecommunications, transportation, and aerospace.

The cherry on top? ASAP Group gives HCLTech the perfect route to cruise into European and American automotive markets and bolsters its presence in Germany, which the company views as a key market. All this comes on the back of HCLTech’s impressive $8.27 billion in revenues for FY 2022. The company employs 200,000 people globally.

With a staggering 20 acquisitions under its belt, HCL Technologies has made some serious waves in the IT industry. The company’s most significant acquisition was in 2018 when it purchased IBM software products for $1.8 billion. Thanks to these strategic moves, HCLTech now holds its head high as India’s third-largest IT firm, hot on the heels of Infosys and Tata Consultancy Services.

HCL Technologies also holds the 9th top rank in the Time Doctor OA500, the first objective index of the world’s top 500 outsourcing firms.

Now let’s hop stateside, where Momentum is gearing up to acquire Georgia-based Asset Black. This move will boost Momentum’s geographic footprint while giving it a new entry ticket into verticals such as financial services. While we await the regulatory thumbs-up, G2 Capital Advisors, serving as the exclusive buy-side advisor to Momentum, confirms that the deal is expected to conclude later this year.

Switching our gaze to the tech startup scene, Gushwork.ai has scored a sweet US$2.1 million in pre-seed funding. What’s the goal? Redefining BPO via artificial intelligence (AI), of course! The hefty backing from investors like Lightspeed and B Capital will drive their marketplace expansion, offering businesses AI-adept offshore professionals. Gushwork.ai’s model, aptly dubbed ‘Uberization’ of the workforce, champions flexible, part-time specialists over full-time employees. The startup, already serving 50 businesses, will use the new funds to bolster quality control, expand geographically, and reach out to more small to medium businesses in the U.S. and Canada.

Now, we jet off to India, where global IT firm Cognizant and Max Life Insurance are shaking hands over a new innovation and development center. The aim? Accelerating Max Life’s digital transformation initiatives. Cognizant, a $19 billion heavyweight, will bring its expertise in AI, automation, and cloud transformation to the table, reinforcing its longstanding partnership with Max Life.

Meanwhile, corporate real estate advisory firm Mohr Partners is hopping aboard the India BPO train, launching an outsourcing business to enhance its lease administration and rent payment services. Mohr’s new venture, with boots on the ground in cities like Mumbai, Chennai, and New Delhi, represents a strategic expansion supporting its fastest-growing service line, Global Lease Services. This move also sets the stage for Mohr’s future BPO services in corporate real estate.

Next stop, Monterrey, Mexico! That’s where software engineering company Ascendion is opening a new office. The new hub will rev up the local economy with an expected 200 jobs in six months and 1,500 jobs over three years. This could also inject an estimated $100 million into the Mexican economy.

Next, an exciting partnership between BPO provider VentureCount Services and financial consultancy firm Tarsus CFO Services. This dynamic duo is set to offer comprehensive services ranging from CFO level to daily bookkeeping. VentureCount, a portfolio company of Everlane Equity Partners, is known for its finance, accounting, and CFO services, while Tarsus offers CFO, corporate development, and controller services. This partnership is geared towards helping Tarsus expand nationally and bolster its comprehensive financial services.

Moving on to omnichannel contact center solutions, we have Upstream Works partnering with Webex by Cisco. Their collaboration will birth ‘Upstream Works on Webex Contact Center’ (UWW), an advanced agent desktop solution to enhance customer and agent experiences across channels. UWW aims to revolutionize workflows by integrating AI applications, business applications, and CRM systems into contact centers. With a reseller community via the Webex App Hub, enterprises will have their pick of tailored omnichannel solutions. Here’s to smoother customer interactions!

There you have it – a startup scoring big, new collaborations blooming, and strategic expansions taking shape. What an exciting time in the BPO world!

The outsourcing M&A news this week

21 July 2023

• Kathleen Roach to lead Ventrica’s continuous improvement – read article..
• Paulo Silva joins Humach as Chief Revenue Officer – read article..
• AI startup raises $2Mn for business outsourcing revolution – read article..

20 July 2023

• Ascendion launches major hub in Mexico – read article..
• VentureCount teams up with Tarsus to boost CFO services – read article..
• Sprinklr debuts unified partners program to bolster global expansion – read article..

19 July 2023

• Mohr Partners starts outsourcing operations in India – read article..
• Kore.ai introduces channel partner program – read article..
• Cognizant, Max Life Insurance launch new center in Chennai – read article..

18 July 2023

• Momentum to acquire Asset Black  – read article..
• 8×8 unveils new program to streamline CX with AI – read article..
• IrisCX introduces real-time AI customer satisfaction tool – read article..

17 July 2023

• HCLTech to acquire ASAP Group for $280M – read article..
• Uberall rolls out new features to boost customer engagement – read article..
• Upstream Works, Webex by Cisco partner for contact center solutions – read article..